This week, the annual GameStop eXpo is taking place at the Mandalay Bay Casino in Las Vegas. Over the course of three days, over 5,200 store managers will converge to get hands-on time with the biggest games of this fall and Q1 2009, as well as in-depth presentations from all of the game publishers. Dan DeMatteo, who was recently named CEO of GameStop after 12 years as COO, took some time to talk about the growth of gaming, the shortage of Wiis and the impact used game sales have in driving the game industry in this exclusive interview.

GameDaily BIZ: What impact has the down-sizing of E3 had on your annual Gamestop eXpo?

Dan DeMatteo: Our vendors do a better job of putting effort and time into the exhibitions and presentations to our people. I think part of this emphasis comes from them not putting as much time and money into E3. They're looking at this as a replacement, in a way. I know over the past few years, it's evolved from simple booths to elaborate exhibits with more interactivity and more booth babes.

BIZ: How long have you been doing this show?

DD: It's 12 years old, although we've changed the venue from Nashville to Dallas and now to Vegas. This is our third year in Vegas. The vendors have been attending the show since the beginning; however, now they have huge exhibits. Nintendo's exhibit was probably 1,000 square feet last year.

"I've never seen this type of demand before. I know they're making more, but we're still short like everybody else. I think we'll have a continued [Wii] shortage this Christmas."

BIZ: How has expansion been going for GameStop?

DD: We've added 600 stores this year between the U.S. and international. The industry is continuing to do well, in spite of other retail product categories suffering during these economic times. Games are still desirable and considered a bargain to budget-strapped consumers.

BIZ: How has the shift to CEO been for you?

DD: Dick (Fontaine) and I have worked as partners running the company since 1996. This separation allows Dick to focus on acquisitions and international expansion and our new executive coming on board, Paul Raines, gives us more depth and breadth to continue this rapid pace of growth that we've been achieving the last few years. The opportunities for growth both inside the U.S. and outside is tremendous. The specialist model that we've developed and modified over the years has been accepted in every country we've opened stores in. And there are a lot of countries we don't have stores in yet. This gives us more opportunity for additional expansion.

BIZ: Many people view GameStop as a specialty retailer. How has the mainstreaming of gamers, consumers who traditionally would shop at Wal-Mart or Best Buy, impacted your stores?

DD: Nintendo just did some research. They looked at Best Buy, Target, Wal-Mart, all the mass merchants and us. They focused on how satisfied Nintendo customers were with experience in stores. Customer satisfaction was higher in our stores than any other. We're putting our stores in centers with Targets, Wal-Marts, Best Buys, Circuit Cities and mass merchants.

BIZ: So the Wii revolution that has swept the industry over the past two years hasn't impacted your stores?

DD: We've been targeting the broader audience for quite a while. This mainstream gaming wave of the Wii isn't something that snuck up on us. We think we do a good job of catering to it. We think our real estate is conducive to it. We know our customer service is superior and assortment is superior to mass merchants. And our value message is superior. You can trade in the games you no longer play and get cash. And that's important in these economic times.

BIZ: How do you target the casual gamer?

DD: We've done a lot of TV marketing this summer. We sponsored Joey Logano's NASCAR this summer, which clearly is not targeting the hardcore gamer. Most of our marketing has been targeting more casual gamers. We think we're well positioned to cater to both the hardcore and casual gamers moving forward.

BIZ: What are your thoughts on Wii, a console that's still impossible to find after two years?

DD: I've never seen this type of demand before. I know they're making more, but we're still short like everybody else. I think we'll have a continued shortage this Christmas.